Turkey is taking over supply chains

Author: Marek Szymański
Turkey is taking over supply chains

Experts agree. A new major player has emerged in the European supply chain market. It is Turkey, whose importance has been growing for the past 8-10 years, but the surge in activity came after the outbreak of war in Ukraine. New transport corridors bypassing Russia and Belarus run through Turkey.

At the just-concluded international trade fair Translogistica in Warsaw, the stands of Turkish logistics operators and carriers occupied a significant part of the exhibition. Market analysts point out that this is no coincidence. Recently published figures from the International Transport Forum clearly show that trade between the European Union and the Balkan countries and Turkey increased by as much as 40% at the beginning of 2023.

The Turkish government forecasts that the transport and logistics sector will bring in $20 billion in revenue by the end of this year, rising to $25 billion next year. Turkey is benefiting from the fact that the EU’s transport corridors with the Eurasian Customs Union Countries (Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia) have been weakened as a result of the war in Ukraine. From the outbreak of the conflict in Ukraine until April 2023, exports to these countries fell dramatically, by as much as 73%, and imports by 26%. Economists point out that Turkey is becoming an important link in global trade, but also an important transport and logistics hub for EU countries. According to the Polish Economic Institute, Turkey is currently the fourth supplier of goods to EU countries.

Turkey’s storage and industrial facilities are also not insignificant for European supply chains. Many European manufacturers prefer to move production and distribution centres there from the Far East in order to shorten supply chains at all costs. Experts are even beginning to refer to Turkey as the ‘new factory for the world’. Turkey is becoming a global power not only in the clothing market, but also in the wind energy and white goods markets. The European Commission has just approved the takeover of Whirlpool by Turkey’s Arçelik. The conglomerate has 30 production sites in nine countries. Experts also highlight the fact that Turkey is a regional production centre for major chemical giants such as BASF, Henkel, Bayer, Evonik, Linde, P&G, PPG and Dow.